By Magnus Brorsson
During the early 1990s a debate about the responsibilities of board members of corporations raged in Sweden. The debate had been caused by the extensive litigation, which derived from the massive crisis the Swedish economy, and especially the financial sector had endured. In some of these cases, compensation claims were brought against board members in collapsed corporations. No liability for damages were, however, imposed and in the general debate the rules about board members liability to pay damages were described as toothless. This question has now been addressed in the ongoing revision of the Swedish corporate legislation. The answer has to some extent been new legislation, but it is obvious that the legislature has been of the overall opinion that the present legislation is rather good, but that the duties of the board could be clarified and more exactly defined.
